AppletoCutAppStoreCommissionsinChinaAmidScrutiny

Apple Inc. will lower its App Store commissions on the Chinese mainland, a move that comes after similar cuts in the U.S., Europe and Japan amid mounting global antitrust pressure.

Beginning Sunday, the standard commission for in-app purchases and paid apps will drop to 25% from the current 30%, the company announced in an update to its developer rules on Friday. The fee for eligible small businesses and auto-renewing subscriptions held for over a year will be reduced to 12% from 15%.

Apple said the adjustment follows communications with Chinese regulators and aims to create a better ecosystem and business opportunities for developers in the country. The change will take effect automatically.

The reduction in the so-called “Apple tax” reflects the growing scrutiny targeting the tech giant’s lucrative App Store. While the move is expected to save Chinese developers billions of yuan, critics argue it does not go far enough to dismantle Apple’s market dominance, as key restrictions such as the ban on third-party payment systems remain.

In China, the fee reduction comes as Apple faces lawsuits from consumers and developers in Shanghai and Beijing. One consumer case has reached the Supreme People’s Court, which is awaiting a final verdict.

Wang Qiongfei, a lawyer representing the consumers in that case, said that based on an estimated 50 billion yuan (nearly $7.3 billion) in annual “Apple tax” revenue from China, the 5 percentage point cut will save local developers about 8.3 billion yuan a year. He described the adjustment as a “significant breakthrough” resulting from consumer rights advocacy and regulatory pressure.

In October 2025, Wang and another lawyer filed a complaint with China’s State Administration for Market Regulation, urging an investigation into Apple for alleged abuse of market dominance. A person close to antitrust policy circles told Caixin in late 2025 that Chinese regulators were already investigating the company.

Despite the concessions, Wang noted that the new 25% standard commission remains significantly higher than rates in the European Union and Japan. He also pointed out that Apple has not opened its ecosystem to third-party payment channels or alternative app stores in China.

This is not Apple’s first fee adjustment in the country. In November 2025, the company halved its commission rate to 15% for digital goods and services sold through WeChat’s mini programs.

Globally, Apple has been forced to lower its fees and open its platform due to legal and regulatory action. In the U.S., its commission for developers using external payment links is now zero, while in the EU, the rate has fallen to between 10% and 17%, plus a “core technology fee.” Some regions now allow third-party app stores on iPhones.

Alphabet Inc.’s Google has made similar changes to its Android system under pressure.

Even as its commission revenue faces headwinds, Apple’s software services are finding new growth from the boom in generative artificial intelligence. In 2025, global generative AI app downloads doubled to 3.8 billion, while in-app purchase revenue more than tripled to over $5 billion, according to data from Sensor Tower.

One developer of an AI companion app told Caixin that their strategy involves using social media platforms like TikTok and Instagram to reach users directly, bypassing the App Store’s rankings. The developer likened Apple’s approach to a “carrot and stick,” where the commission cuts are the carrot, but the company’s absolute power to approve or remove apps remains the stick.

Contact editor Wang Xintong (xintongwang@caixin.com)